Sunoco Logistics announces Permian Express crude pipeline

Sunoco Logistics Partners LP’s newly announced Permian Express pipeline will transport West Texas crude oil to Gulf Coast markets. Phase I of the project will move about 150,000 b/d from Wichita Falls, Tex., to Nederland-Beaumont, Tex. Sunoco will reverse its Wortham-to-Wichita Falls pipeline to create continuous pipeline service from Wichita Falls to Nederland, including using excess capacity on the southern leg of its West Texas Gulf pipeline system.

Sunoco Logistics expects Phase I to be operational within 6-9 months at an initial capacity of 90,000 b/d, with 150,000 b/d expected within 12-18 months. The company plans to hold an open season for Phase I within a week, offering commitment terms of 3, 5, or 7 years.

Permian Express Phase II would boost capacity by at least 200,000 b/d and extend shipments as far east as St. James, La., using a combination of new and existing pipelines. Sunoco could twin 300-miles of pipeline, parallel to the existing West Texas Gulf pipeline from Colorado City, Tex., to Wortham, Tex., for Phase II. From Wortham it would connect to existing excess capacity of the southern leg of the West Texas Gulf pipeline system. Sunoco expects Phase II to be operational by second-half 2014.

Sunoco Logistics described Permian Express as separate from, but complementary to, previously announced plans to expand crude flow on the West Texas Gulf pipeline by at least 100,000 b/d (OGJ Online, Apr. 12, 2012). Sunoco says currently announced projects will increase crude takeaway capacity from West Texas by a total of at least 450,000 b/d.